Subcontractor of electronic money distributor

In accordance with Article 3(4) Directive 2009/110/EC (EMD2), electronic money institutions should be allowed to distribute and redeem electronic money through natural or legal persons which act on their behalf. The requirement to “act on their behalf” means that the distribution and redemption of electronic money may only be provided by persons who are in a direct contractual relationship with the electronic money institution. It should be stipulated in the respective contracts through appropriate clauses that the distributor “acts on behalf” of the electronic money institution. A distributor can, however, involve other natural or legal persons for the distribution of electronic money provided that it is ensured that the electronic money institution still remains responsible for all persons involved in the distribution of the electronic money. Sub contracting should be clearly stated in the relevant contracts. This presupposes that the possibility of sub-contracting is already foreseen in the contracts between the actual distributor and the electronic money institution. This also requires an indication in the contracts between the distributor and the sub-distributor that the latter is also acting on behalf of the electronic money institution. All of this can be the subject of a tripartite agreement between the electronic money institution, distributor and sub-distributor. All requirements for distributing and redeeming electronic money should also be met in the case of sub-contracting. For example, that the requirements regarding transparency and liability are met, and that the relevant passport notification requirements are fulfilled. Disclaimer: The answers clarify provisions already contained in the applicable legislation. They do not extend in any way the rights and obligations deriving from such legislation nor do they introduce any additional requirements for the concerned operators and competent authorities. The answers are merely intended to assist natural or legal persons, including competent authorities and Union institutions and bodies in clarifying the application or implementation of the relevant legal provisions. Only the Court of Justice of the European Union is competent to authoritatively interpret Union law. The views expressed in the internal Commission Decision cannot prejudge the position that the European Commission might take before the Union and national courts.